Capital Flows and Their Macroeconomic Effects in India

 
Author/Editor: Kohli, Renu
 
Publication Date: December 01, 2001
 
Electronic Access: Free Full text (PDF file size is 1,683KB).
Use the free Adobe Acrobat Reader to view this PDF file

 
Disclaimer: This Working Paper should not be reported as representing the views of the IMF. The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate
 
Summary: This paper documents trends in movement and composition of capital flows into India in a comparative perspective, examines the impact of these flows upon key macroeconomic variables in the economy, and dwells on implications for economic policy. We find that an inflow of foreign capital results in a real appreciation and has a significant impact on domestic money supply. During a capital surge, these effects have been countered through intervention and sterilization. The paper concludes with a discussion on the costs of these policies in the event of a heavy inflow of foreign capital into India.
 
Series: Working Paper No. 01/192
Subject(s): Capital flows | India | Capital account | Real effective exchange rates | Intervention | Capital controls | Money supply | Foreign exchange reserves

Author's Keyword(s): Capital flows | capital account | real exchange rate | foreign exchange reserves | intervention | money supply | sterilization
 
English
Publication Date: December 01, 2001
ISBN/ISSN: 1934-7073 Format: Paper
Stock No: WPIEA1922001 Pages: 36
Price:
US$15.00 (Academic Rate:
US$15.00 )
 
Price Delivery Note: Prepayment required for individual copies. An annual subscription is $375.00 a year. It includes 12 monthly shipments and priority mail delivery. The Stock No. for the subscription is WPEA.
 
Please address any questions about this title to publications@imf.org